30 Second Insurance Tips©

Tip 177- Package Pricing

Health insurers routinely try and cross sell ancillary lines of coverage; such as dental and vision insurance; term life and short term disability and, more recently, critical illness, accident and cancer plans.

Whether employer paid or voluntary, the insurance company will often incent the purchase decision by offering a point or two off the group medical rates.

Here’s an extreme example we just encountered.

By adding a very limited exam only vision benefit with a total monthly premium of just $156 ($2.85 for single coverage/$8.52 for family), the insurer reduced the medical rates (which were $512 for single; $1,639 for family) by 5%. Annualized, for this group of 25, it worked out to spending $1,872 for a modest – but still, new and worthwhile – benefit to lower the health premiums by $10,693.

Package pricing doesn’t always yield such results, but you need the foresight (pun intended) to ask!